List the Two Types of Diversification Strategies and State the Clear

question 116

Essay

List the two types of diversification strategies and state the clear distinction between them.

Apply knowledge of ratios and proportions to evaluate financial investments.

Utilize proportional reasoning in assorted financial contexts, including sales, costs, and expenses.

Interpret and solve practical problems involving equivalent ratios.

Understand the concept of equivalent ratios and how to reduce them to their smallest terms.

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Definitions:

Under Production

A situation where less is produced than could be achieved with the available resources, often leading to inefficiencies and unmet demand.

Consumer Surplus

The gap between the price consumers are prepared to pay for a product or service and the actual amount they spend on it.

Market Price

The market rate for buying or selling an asset or service in a public trading environment.

Producer Surplus

The gap between the minimum amount sellers are prepared to accept for a product or service and the actual payment they get.